single track were so constantly filled with trains as to render delays, always costly, unavoidable. The earnings of 1863 were ten million four hundred and sixtynine thousand against five million three hundred and forty-two thousand dollars in 1860, while the increase in the number of locomotives was comparatively small. In 1863 there were two hundred and forty-three against two hundred and twenty in 1860. Of this increase, less than one-half were in use the whole of last year. The increase of freight cars has been somewhat greater in proportion, though the present stock is quite inadequate. With a moderate increase of equipment the earnings of last year would have been at least one million dollars larger than they were, while the expenses would not have been proportionately increased.

“In view of these facts the Directors have authorized the President to contract for as many locomotives, and to build in the shops of the Company as many cars as the Executive Committee and the officers shall judge necessary. Under this authority forty first-class freight locomotives have been ordered and are in course of delivery. The whole number will probably be completed by the first of June. The building of cars is going on in the Company's shops. Additions to the double track, new turnouts, machine shops, engine houses, and station houses will be commenced in the spring. To provide the means to meet the cost of these improvements, the Board of Directors have only two resources-either to use the earnings of the road, or to raise new capital."

They determined in favor of the latter, and obtained

legislative authority to increase the capital stock five millions of dollars.

In this year the rolling stock of the road consisted of two hundred and forty-three locomotives, one hundred and nine passenger cars, and three thousand five hundred freight cars. The net earnings of the road were four million eighty-eight thousand nine hundred and seventy dollars.

The report of the President for the year 1864 stated that, although the road was now very well supplied with cars, except passenger cars, there was "still a great deficiency of engines. The engines have been, for the last three years, worked night and day without any intermission.

"In addition to the extra service required of the engines, the shops of the Company were found inadequate to repair them when they could be spared for that purpose, and it has been found absolutely necessary to provide more shops and larger accommodations for the repairs of engines and cars. The room provided did not anticipate so large an increase in the rolling stock as has been found necessary to do the increased, and constantly increasing business offered.

"To meet this want the Company have nearly completed a new machine shop at Susquehanna, which will much facilitate the repairs of engines now so much needed, and give accommodations for building

new ones.

"There would have been a much more economical working of the road if the motive power had been greater and in first-rate working order.

"To provide for this deficiency contracts have been made to furnish sixty-seven (67) engines of the most approved pattern, to burn coal."

In this year the rolling stock of the Company consisted of two hundred and seventy-six locomotives, one hundred and fourteen passenger cars, and four thousand and eighty-seven locomotives. The net earnings of the road were four millions five hundred and ninety-four thousand two hundred and twenty-five dollars. In 1865, the rolling stock consisted of three hundred and thirty-two locomotives, one hundred and thirty-three passenger cars, and four thousand two hundred freight cars. The net earnings reached the enormous sum of five millions of dollars, namely, five million sixty-six thousand five hundred and eleven dollars.

OPERATIONS OF THE ROAD FOR THE YEAR 1866.The earnings of the road for the year 1866 were fourfourteen million five hundred and ninety-six thousand four hundred and thirteen dollars; and the expenses ten million eight hundred and fifty-three thousand one hundred and forty dollars.

The expenses of operating the road in 1865 were $11,754,395

It is no more than just to state that this large decrease in the working expenses of the road was not made at the expense of the condition of the track, or the efficiency of the equipment.

FINANCIAL CONDITION.-The financial condition of the Company, December 31, 1866, was:

The three million first mortgage bonds mature and become payable on the first of July next. Previous to their maturity it is the intention of the Company to invite proposals for their extension for a period of thirty years, at seven per cent., per annum; authority being given to the Company, by a statute of the State of New York, to extend any or all of its mortgage bonds, in the order of their respective priorities.

These bonds being a first mortgage on the entire property of the Company, must be regarded as a very desirable investment, and the Company will undoubtedly be able to negotiate for their extension on advantageous terms.

The passenger travel over this road for the last ten years has been immense, and seems to be steadily

increasing every year. It forms a part of one of the favorite routes between New York and Chicago, the other roads on the route being the Michigan Southern, and the Lake Shore line. The distance from New York to Chicago, by this route, is nine hundred and fifty-eight miles, and the running time about thirtysix hours. Four passenger trains leave New York daily, from the depot at the foot of Chambers Street, at about eight and ten A. M., and five and seven P. M., passing through Hornellsville, Dunkirk, Erie, Cleveland, and Toledo, and arriving at Chicago at about six and eleven A. M. and eight P. M. The trains run into the new depot of the Michigan Southern road, on the corner of Van Buren and Sherman Streets.

Harper's Guide Book of the Erie Railroad says: "We would suggest to the traveller that he make his first day's journey extend as far as Port Jervis, and go the next day to Susquehanna, drive down to Lanesburg, and pass the night at the quiet little inn there, and devote the next morning to an examination of the viaduct and the cascade bridge. He can then take an afternoon train for Binghampton or Elmira, where he can pass the night. The next day he should go to Hornellsville, and the next to Dunkirk. The question is frequently asked, which side of the car is preferable to sit on? It is impossible to select one side as preferable for the entire route, for one side is often hidden for many miles by mountains, while from the other side the view is good. From Middleton to Mount Hope, where the road returns from Pennsylvania to New York across the Delaware River, the right hand side presents one continuous scene of